Research On Canadian Payday Loan

Canadian payday loan as the research object, from the perspective of the basic situation of the industry, payday loans user survey results and cost analysis, this paper builds a comprehensive, in-depth understanding of payday loans. By analyzing the emergence and existence of payday loan, it provides financial services to financial excluded groups as a complementary part of the mainstream financial market, so we can evaluate it as a special form of informal finance in Canada. Canadian payday loans as a form of informal financial services in the financial markets, this new form as well as its improved regulatory mechanisms has a strong practical significance in China’s regulation and governance of private finance.The body of this paper is divided into seven chapters in total, from point to plane, carried out the analysis of payday loans in Canada, and to draw conclusions and revelations. With the method of description of the statistical, the results of telephone survey of British Columbia payday loan users are presented in the text. With case analysis method based on second-hand information by hands, this paper studies cost of payday loans in Canada. Given the current situation that domestic scholars have very little research on payday loans, this study relates to the theoretical value is to fill the gap of this area. The social significance of this study is to introduce a special performance of the informal financial activities and provide a new perspective for the construction of our informal finance.The first chapter is an introduction of research background. In this chapter, it explains the form of reimbursement, operational processes, as well as three kinds of operating modes of payday loan provider, so that readers could have a preliminary understanding of the payday loan.The second chapter of the literature review, the current literature is mainly focused on the social effects of payday loans is good or bad, to discuss characteristics of people use payday loans, the industry regulation, etc. The third chapter is about the development of the Canadian payday loans, briefly describes the development of payday loans in the United States, the United Kingdom, Canada, and Australia. As extensive discussions of payday loans aroused, the second part of this chapter has an objective presentation from the point of view of the supporters and opponents. Chapter4discusses the form of payday loans. Based on their performance, combined with related theories I deem payday loan as a special manifestation of informal finance in the financial system.Fifth chapter makes a presentation of the basic situation of the payday loan industry in Canada. Through the results of telephone interview of payday loan users in British Columbia, this part describes the reasons for the use of payday loans, satisfaction, the borrower amount, repayment conditions, etc.In chapter VI, case-analysis presents the cost of payday loans in Canada. It includes the method and adjustments. Conclusions reveal that the cost differences exist between the different kinds of business payday lenders and between different scales. New customers apply for loans for the first time and old customers will also lead to cost differences.Chapter VII makes positive comments on the existence of payday loans, suggesting people should look at this industry dialectically. As manifestations of the informal financial activities, payday lending provides effective services to the people. Extended to our embarrassing state of the private financial led by financial control, a few suggestions were made in the last paragraph.Although this study is payday loans in Canada, but not limited to payday loans in Canada. Recalling the full text, the Canadian payday loan industry is not being fully analyzed in every aspect due to limited information. Lacking in addition to the content, the same lack of data weakened persuasion of this article. Since the author is not involved in the research activities mentioned in the text, the information available is limited, incompleteness of explanations is inevitable. Criticism and correction will be appreciated.